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1inch Review The Best DEX Aggregtor

The 1inch DEX aggregator calls itself the “Leading DEX Aggregator” and we agree.

DEX aggregators are financial protocols that access liquidity from a wide range of trading pools via one single dashboard.

1inch will save you time and gas fees since it is a protocol searching several DEXs to get the best price and fees for you.

What is 1inch?

1inch is the leading and largest DEX aggregator. This can be verified at Coinmarketcap.

A DEX aggregator splits orders between many different DEXs and private liquidity providers to find the best possible exchange rates for you.

You can easily connect a web3 wallet (metamask) with 1inch Exchange and begin swapping ERC-20 tokens and BSC tokens at the best possible rates.

The largest exchanges for ERC-20 tokens are Uniswap and Sushiswap. The largest exchange on the BSC is Pancakeswap and you can read more about these exchanges in our Pancakeswap version 2 review VS Uniswap.

The exchange will even split orders between several exchanges if that’s what it takes to get the best rate for an entire order.

So, for example, if you are looking to trade BTC-ETH 1inch will search many markets to find the best price for you.

Why is this good?

You will always get the best exchange rate.

How to use 1 inch exchange?

Below you can see a screenshot from 1inch exchange dashboard and user interface. Her you find

  1. Menu
  2. Your connected wallet balance
  3. Some charting tools
  4. Exchange tools
  5. Routing information
  6. Available exchanges for your selected trade
1inch exchange dashboard and user interface

1. 1inch Menu

In the 1inch menu you can browse between the

  • Exchange (As you can see in the screenshot above)
  • DAO (decentralized autonomous organization) information. Here you can find information about the governance token. More information about this under the token section.
  • API – Here you can find information about the 1inch API v3, Pathfinder, which is the cutting-edge discovery and routing algorithm. Read more under the routing sub heading.
  • Blog – 1inch publishes news about the DEX in this blog
  • Help – Help center
  • Forum – Discussion regarding the governance and the future of 1inch
  • Buy ETH

2. 1inch Wallet information

Here you can see the wallet information in the 1inch DEX.

  • Network – What network you are connected to. Currently, 1inch supports Ethereum and Binance Smart Chain (BSC)
  • 1inch balance – If you click on this icon you will find your 1inch balance, how much you have staked, how much you have earned and the current staking reward rate.
  •  Your address

3. 1inch Charting Tools

1inch is offering some basic charting tools. 

4. 1inch Exchange Information

Here you can enter your exchange parameters for your swap

Also, you will see rate, inverse rate and USD price.

5. 1inch Routing Information

Here, you can see what exchanges will be used for your swap. In the above example uniswap V2 will be used.

6. 1inch Available Exchanges

Here, all available exchanges are listed and how much they differ from the best rate. As you can see the best rate is given by Uniswap V2 in the above example.

What is the 1inch token?

The 1inch token is a governance token. In DeFi there are different kind of tokens where the two most common are utility token and governance token.

  • Developers create governance tokens to allow the token holders to help shape the future of a protocol. Governance token holders can influence decisions concerning the project such as proposing or deciding on new feature proposals and even changing the governance system itself. This can be done by voting as it is implemented for 1inch.
  • Developers issue utility tokens in order to fund development of the cryptocurrency and that can be later used to purchase a good or service offered by the issuer of the cryptocurrency. Utility tokens can be a method of fundraising for a start-up.

The 1inch team

1inch was founded by Sergej Kunz, who is still the CEO of 1inch, and Anton Bukov, its CTO.

Like many other Ethereum-based projects, 1inch emerged from an ETH dev conference. This time it was at the ETHGlobal hackathon back in 2019. 

What is 1inch order routing?

1inch uses an API they’ve named Pathfinder to find the best possible paths for any token swap.

It can splitting a swap across several exchanges and even across different market depths of the same exchange, if necessary.

As a result, the total exchange rate, including fees, a user gets is better than what they would have gotten on any single exchange.

1inch Exchange Fees

1inch doesnt not charge any exchange fees, deposit fees or withdrawal fees.

Why?

1inch is a DEX aggregator, which means that swap rates we offer to users already include various fees charged by DEXes. As 1inch main purpose is to give their users the best swap rates, adding any extra charges on top of those already charged by DEXes would not serve that purpose.

Therefore, 1inch’s policy is to charge no on-top fees to make sure that users get the best possible rates

1inch and the Binance Smart Chain BSC

1inch aggregation protocol and the 1inch liquidity protocol are available to BSC users since the 25th of Feb 2021. 

 

Staking the 1inch token

Since the 1inch token is a governance token you will be eligible to vote on the protocol. Under the DAO(decentralized autonomous organization) tab, you can see the main five categories you can vote on

  1. Swap fee – The swap fee is a fixed fee charged on each swap trade on the protocol.
  2. Decay time – The decay period is a unique feature that protects traders from front running attacks. A longer decay period leads to less price volatility in the pool. 
  3. Referral Reward – This reward will be paid to referrers, and its size will be decided by the DAO
  4. Governance Reward – The governance reward is introduced to compensate users for their participation in setting 1inch Liquidity Protocol parameters
  5. Price Impact Fee – The price impact fee is charged on top of the swap fee and is proportionate to the price slippage in a trade.
Also, you can see top addresses by voting power.

What is Chi Gas token on 1 inch?

The CHI gastoken was first introduced to save ETH gas fees for 1inch users.

The CHI gastoken is an ERC-20 token that is used to pay transaction costs on the 1inch Exchange.

How and how much, you might wonder?

According to 1inch the transactions on the exchange are up to 42% cheaper because of the CHI gastoken.

1inch Exchange Pros and Cons

1inch Pros

  • No hacking incident
  • 1inch Exchange has no exchange, deposit, or withdrawal fees.
  • 1inch Exchange aggregates liquidity from several DEXes which means you will get the best rate
  • CHI Gas Tokens can lower transaction costs even further.
  • Yield farming possibility
  • User friendly interface

1inch Cons

  • As for all DEXes, 1inch doesnt support fiat currencies
  • DEXes in general is harder to understand for a newbie
  • As for all DEXes (compared to CEX) there is no support ticket available. You need to search in help forums and solve your own issues
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